‘The euro is a sell on rallies above 1.10 against the dollar as the ECB’s senior leadership under Draghi and Praet remain cautious about the outlook for euro-zone inflation.’ – Mansoor Mohiuddin, NatWest Markets (based on Bloomberg)
Pair’s Outlook
On Tuesday morning the common European currency continued to depreciate against the US Dollar, as the currency exchange rate passed the support of the weekly S1, which is located at the 1.0916 level. From a technical perspective on the daily chart the currency exchange rate is likely to retreat down to the 1.0833 level, where the closest support cluster begins. However, on smaller timeframes the situation is different, as there are various short term support levels, which could slow down the fall of the Euro or even induce a rebound.
Traders’ Sentiment
SWFX traders remain bearish, as 61% of open positions are short. Meanwhile, 54% of trader set up orders are to sell the Euro.
